Cryptocurrency exchange Kraken has acquired Crypto Facilities, a British digital asset trading platform and index provider, in an undisclosed “nine-figure” deal. The acquisition means that Kraken will now be able to offer both spot and futures trading in bitcoin core, bitcoin cash, ripple, litecoin and ethereum while boosting revenue by attracting institutional customers.
‘Deal Turns Kraken Into a One-Stop Shop’
Kraken chief executive officer Jesse Powell has revealed to U.S. magazine Fortune that the San Francisco-based company was on the verge of completing a $100 million funding round from its “larger customers.”
Commenting on the Crypto Facilities deal, 10 months in the making, Powell said the acquisition reinforces Kraken’s thrust on creating complementary services to its core spot exchange and over-the-counter trading. He stated that the exchange had since integrated the back-end operations of Crypto Facilities, allowing investors from both companies to trade on a single platform.
Users now have access to futures on six cryptocurrency pairs, “providing a highly efficient way to trade and hedge cryptocurrency in any market environment,” he said in an email to news.Bitcoin.com. For U.S. customers, futures trading will, however, not be available. The U.K.’s Financial Conduct Authority has already approved the transaction, according to Kraken.
Of his company’s largest acquisition yet, Powell said:
We are excited to introduce eligible clients to these industry leading futures and index products. Over the coming months, our teams will continue to enhance and expand these offerings. We’ve got great stuff in store for traders and institutional clients in 2019.
Founded in 2015, Crypto Facilities offers derivatives trading in cryptocurrencies like BTC,